Clifford Chance

Clifford Chance secures High Court Win representing three (out of six) aircraft lessors in one of the largest ever insurance trials

Clifford Chance has achieved a major victory in the English Commercial Court on behalf of its clients Dubai Aerospace Enterprise, Falcon 2019-1 Aircraft 3, and KDAC Aircraft Trading 2. The firm successfully represented the three aircraft lessors in one of the largest insurance trials in UK history, securing a landmark ruling that insurers must pay out under "war risk" policies.

On 11 June 2025, following a 12-week "mega trial," the Court handed down its judgment in a case concerning over $4 billion worth of aircraft stranded in Russia after the country’s invasion of Ukraine. The ruling provides long-awaited clarity for lessors nearly three years after more than 400 foreign-leased aircraft were detained by Russian authorities.

The decision is expected to have global ramifications, with similar proceedings underway in Ireland, the United States, and other jurisdictions. It also sets a significant precedent for political risk insurance holders across sectors amid rising geopolitical instability.

Clifford Chance led the case that the aircraft losses triggered coverage under the lessors’ "War Risks" insurance. The legal team was led by Partners Julian Acratopulo and Philip Hill, alongside Director of Insurance Litigation Baljit Rai, and with Partners Lindsay Bickerton, Sam Brown, and Claire Freeman. Senior Associates Alex Gabriel, Nicholas Harding and Ayla Ronald also advised. 

Julian Acratopulo, comments:

“It’s a reassuring outcome not only for the aviation sector but for all policyholders who count on insurance to respond when it matters most. Putin's invasion of Ukraine and subsequent restraint of over 400 commercial aircraft was the paradigm scenario the owners thought that they had insured against. The ruling underscores the integrity and reliability of the UK courts in upholding contractual commitments, even when faced by multiple defendants with significant combined resources and the most complex circumstances imaginable.”